Correlation Between Bank Mandiri and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Kasikornbank Public at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Mandiri and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Kasikornbank Public Co, you can compare the effects of market volatilities on Bank Mandiri and Kasikornbank Public and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank Mandiri with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Kasikornbank Public.
Diversification Opportunities for Bank Mandiri and Kasikornbank Public
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Kasikornbank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Bank Mandiri is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank Mandiri Persero are associated (or correlated) with Kasikornbank Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasikornbank Public has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Kasikornbank Public go up and down completely randomly.
Pair Corralation between Bank Mandiri and Kasikornbank Public
Assuming the 90 days horizon Bank Mandiri is expected to generate 2.16 times less return on investment than Kasikornbank Public. In addition to that, Bank Mandiri is 1.43 times more volatile than Kasikornbank Public Co. It trades about 0.02 of its total potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.07 per unit of volatility. If you would invest 1,740 in Kasikornbank Public Co on September 3, 2024 and sell it today you would earn a total of 58.00 from holding Kasikornbank Public Co or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Kasikornbank Public Co
Performance |
| Timeline |
| Bank Mandiri Persero |
| Kasikornbank Public |
Bank Mandiri and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Kasikornbank Public
The main advantage of trading using opposite Bank Mandiri and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Kasikornbank Public can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kasikornbank Public will offset losses from the drop in Kasikornbank Public's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
| Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Hang Seng Bank | Kasikornbank Public vs. PT Bank Rakyat | Kasikornbank Public vs. Delhi Bank Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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